88 Wood Street, London, EC2V 7RS, United Kingdom    Phone: +44 (0) 845 658 0008    Email: info@lysisfinancial.com
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New Money Laundering Regulations to Impact Estate Agents

From the 26th of June 2017, the new UK Money Laundering Regulations 2017 (“MLR17”) come into force placing new legal and regulatory requirements on Estate Agency Businesses. The MLR17s are an amendment to the current legislation which has been enforced since 2007.

ALL EABs must comply with these requirements which also bring into force a new statutory regulator which will regulate all EABs from both a financial crime and conduct perspective. Any EAB which fails to comply with the complex regulations will face financial and legal penalties from both a company and individual level.

Key impacts relating to EAB under these new regulations include:

  • The regulations are much more prescriptive
  • Purchasers as well as vendors are now included in CDD
  • Risk Management and Risk Assessment are central and must be documented
  • Information requested of other firms must be provided within two days
  • Training is the responsibility of senior managers and must include data protection
  • Reliance is extended and now includes other EABs
  • Politically Exposed Persons (PEP) definitions have been extended

In order to comply with these regulations and avoid financial and legal penalties, EABs will have to:

  • Build a robust and effective AML Governance Framework
  • Increase personal accountability by appointing a suitably skilled Nominated Person
  • Carry out and embed a Risk Management process within the firm
  • Ensure policies, procedures and controls relating to AML and Financial Crime are fit-for-purpose and are regularly reviewed
  • Ensure Customer Due Diligence is carried out and is effective on both purchasers and vendors
  • Ensure all staff are regularly trained in relationship to AML

Lysis is an expert provider of shaping, designing and implementing CDD and AML and target operating models for EABs. Our experience includes:

  • AML Health Check and Framework Review
  • AML & COB Target Operating Model
  • CDD Utilities and operating models
  • AML Policies & Procedures
  • AML systems selection
  • AML systems implementation
  • Change Programme Design & Management

For more information, and to discuss any requirements, please call us on 0845 658 0008 or email us at info@lysisfinancial.com